If you're StockCharts member, please do me a little favor by "vote" and the most importantly "follow" my public chart list HERE. You need "follow" only once but vote can be done everyday, so whenever you have time, please vote for me, thanks! If you're not StockCharts member, you can also help boosting my rank by clicking the link once everyday.

Please, again, all my calls in the daily live update is for intra-day only, they're absolutely invalid when the closing bell rings. If you're interested in the forecast for days and weeks, Please subscribe my Daily Market Report.

FWIWShorting bitcoin via short GBTC"New shorts are being charged 18.5% because the overall float is relatively small." One analyst “expects short interest and borrowing costs in GBTC to rise to as high as 50% on an annual basis, once new bitcoin futures and ETFs enter the market, expanding available options for investors to have exposure in the digital currency and suppress the existing premium for the GBTC…."While the futures contract will allow easier and safer bitcoin short selling, it will also allow for easier and safer bitcoin long buying. Long GBTC holders may feel the pain of its 59% asset premium shrinking, while short sellers will probably be incurring a 50%-plus stock borrow fee--both sides will be paying a premium in order to ride the bitcoin roller coaster once the Cboe futures start trading…https://eresearch.fidelity.com/eresearc ... S_SVC&sb=1

Al_Dente wrote:FWIWShorting bitcoin via short GBTC"New shorts are being charged 18.5% because the overall float is relatively small." One analyst “expects short interest and borrowing costs in GBTC to rise to as high as 50% on an annual basis, once new bitcoin futures and ETFs enter the market, expanding available options for investors to have exposure in the digital currency and suppress the existing premium for the GBTC…."While the futures contract will allow easier and safer bitcoin short selling, it will also allow for easier and safer bitcoin long buying. Long GBTC holders may feel the pain of its 59% asset premium shrinking, while short sellers will probably be incurring a 50%-plus stock borrow fee--both sides will be paying a premium in order to ride the bitcoin roller coaster once the Cboe futures start trading…https://eresearch.fidelity.com/eresearc ... S_SVC&sb=1

The cryptocurrency’s eye-popping rally would have triggered so-called circuit breakers on seven of the past 10 days, pausing or even halting trading to ensure an orderly session, based on rules planned by exchanges.

As of Monday a 1 bitcoin future contract will cost you $4,500 in collateral. A week later the 5 coin contract opens at around $20,000 collateral. AS soon as the brokers establish day trader margin it could explode. ES collateral is around $5,300 but day trading collateral is around $500.

Anyone who isn't focused on how China has the high probability of being the straw that breaks the world economy isn't paying attention. Now is the time (according to experts) for them to purge the excesses before hitting the gas pedal in time for the next Party Congress. A two year pull back supposedly would be a longer term positive for them.

London/Frankfurt closing in the middle of my 1000 tick jobs report bar. Also at volume point of control and VWAP. Perhaps a boring day as traders leave early so they won't have to go out on Guy Shopping Day (Christmas Eve).

Trades with cats wrote:As of Monday a 1 bitcoin future contract will cost you $4,500 in collateral. A week later the 5 coin contract opens at around $20,000 collateral. AS soon as the brokers establish day trader margin it could explode. ES collateral is around $5,300 but day trading collateral is around $500.

Does that mean Bitcoin will drop to $4500? how it will impact Bitcoin price?

No, they won't drop. The futures contract is settled in US dollars, so it is a contract for the difference in price over time. Just like the ES is to the S&P 500. So you do not 'own' any coins, it is a derivative contract for the difference in price between two points of time. As opposed to stuff like corn where you can actually take delivery.

The initial margin requirement is to cover price swings. If it goes against you you will have to add collateral or they will close you out.

So for people who want to use bitcoins to buy stuff this is pointless. To traders and speculators it brings the ability to speculate on coin price changes to a very familiar high volume low cost format.

Who is online

The content on this website is provided as information only and should not be taken as investment advice. All site content shall not be construed as a recommendation to buy or sell any security or financial instrument, or to participate in any particular trading or investment strategy. The ideas expressed on this site are solely the opinions of the author and are for entertainment purposes only. Any investment decision that results in losses or gains made based on any information on this site is not the responsibility of author.

This website provides third-party websites for your convenience but the author does not endorse, approve, or certify the information on other websites, nor does the author take responsibility for a part or all materials on the third-party websites which are not maintained by the author.